Auction Results: GII 8/37 Reopening
· Robust bids. The 20y GII 8/37 reopening auction drew strong demand with a bid/cover of 2.118x despite the slightly larger-than-expected issuance size of MYR2.5b and market’s cautious sentiment in the run up to the 14th General Election on 9 May. Participation likely came from domestic real-money accounts predominantly, such as lifers and pension funds given attractive spread over MGS and the 20y being one of the wider points of the curve.
· Successful yields averaged 4.804% with the high cutting off at 4.827%, within the wide pre-auction WI range of 4.85/70%. Lowest successful yield was 4.790%.
· The next scheduled auction is a new issue of 5y MGS 4/23 which we estimate to be in a size of MYR4b.
Bid to cover: 2.118
Highest yield: 4.827%
Average yield: 4.804%
Lowest yield: 4.790%
Cut off: 100%
Winson Phoon, ACA
(65) 6231 5831
Se Tho Mun Yi
(603) 2074 7606
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